Laxmi India Finance Limited conducted its Q1 FY27 earnings conference call on August 13, 2026, at 12:00 P.M. The call was hosted by Go India Advisors and featured the company's management team including Managing Director Deepak Baid, CFO Gopal Krishan Sain, Treasury Head Piyush Somani, Chief Business Officer Kuldeep Singh, and National Head-Collection Sanjay Ojha.

Financial Performance Highlights

  • Assets Under Management (AUM) stood at ₹1,721.7 crores as of June 30, 2026, representing 28% year-on-year growth
  • Own book increased by 31.7% to ₹1,626.9 crores
  • Disbursements during the quarter were ₹232 crores compared to ₹166 crores in Q1 FY26
  • Net Interest Income increased by 39% YoY to ₹47.1 crores
  • Profit Before Tax increased by approximately 72% to ₹21.9 crores
  • Profit After Tax increased by approximately 70% to ₹16.4 crores
  • Return on Assets (ROA) improved to 3.45% from 2.75% YoY
  • Net Interest Margin (NIM) expanded to 11.36% from 10.43% a year ago

Asset Quality and Portfolio Metrics

  • Gross NPA stood at 2.08% compared to 2.13% in March 2026
  • Net NPA stood at 0.93% compared to 1.09% at March 2026 end
  • Stage 2 assets reduced from ₹46.6 crores to ₹44 crores during the quarter
  • Stage 3 assets stood at ₹33.5 crores
  • Credit cost was ₹3.69 crores or 0.95% of average gross loan
  • Provision Coverage Ratio (PCR) stood at 55.22%
  • MSME franchise remained core with AUM of approximately ₹1,395 crores
  • Vehicle finance AUM at approximately ₹131 crores
  • Construction and loan against property AUM at approximately ₹90 crores
  • Wholesale lending AUM at approximately ₹58 crores
  • Personal loans AUM at approximately ₹49 crores

Funding and Liability Profile

  • Average cost of borrowing declined by 67 bps YoY to 10.66%
  • Banks accounted for approximately 70% of overall borrowing mix
  • Banks contributed more than 84% of incremental borrowing during Q1 FY27
  • Raised approximately ₹296 crores across 9 facilities during the quarter
  • Added ICICI Bank as new lending partner
  • Other lenders included IDFC First Bank, Suryoday Small Finance Bank, Bajaj Finance, DCB Bank, Canara Bank, KVB Bank, and Union Bank of India
  • Credit rating upgraded from A minus to A

Capital and Liquidity Position

  • Net worth stood at ₹482.8 crores as of June 30, 2026
  • Capital Adequacy Ratio remained strong at 25.32%
  • Tier 1 capital adequacy at 24.82%
  • Debt to equity ratio stood at 3.1 times
  • Net debt to equity (after considering liquidity) at 2.57 times
  • Liquidity maintained at approximately ₹255.9 crores at quarter end
  • ALM position comfortable with cumulative surplus of approximately ₹420 crores at five-year bucket

Operational Metrics

  • Customer base expanded to approximately 43,946 customers from 37,122 a year ago
  • Branch network increased to 194 branches across six states (Rajasthan, Madhya Pradesh, Gujarat, Chhattisgarh, Uttar Pradesh, Maharashtra)
  • 37% of borrowers are first-time borrowers
  • Added 25 branches over the last year, including 10 in Uttar Pradesh and 6 in Maharashtra
  • Branch breakeven typically achieved at ₹1.5-2 crores AUM within 7-9 months

Guidance and Outlook

  • Maintained AUM growth target of 30-35% annually
  • Maintained PAT growth guidance of 40-45% for FY27
  • Planning to raise approximately ₹300 crores capital next financial year
  • Targeting ROA of 3.5-3.75% and ROE of 13.5-14%
  • Expect further 20-25 bps reduction in borrowing costs over coming quarters
  • Planning to expand into 30-35 new branches across existing states in FY27
  • Already added 10 branches in Q1 FY27

Risk Factors and Challenges

  • Credit cost increase primarily attributed to vehicle financing portfolio (specific older vintages in specific geographies)
  • Tightened acceptance criteria and increased field follow-ups in vehicle finance book
  • Monitoring competitive intensity in MSME lending